Stena RoRo provides vessels, innovative solutions and project management for RoRo and ferry operators like ourselves. Its customers are operators and shipping companies around the world. The company’s expertise, dedication and financial resources create customer value, growth and profitability, and make it an attractive place to work.
Strong year for RoRo and RoPax
Both the RoRo and the RoPax market were relatively strong in 2016. The RoPax market is currently showing a balance between supply and demand, while the RoRo market is experiencing a large number of new orders. Already in 2017, the RoRo market will receive an addition of new large vessels.
Order for four new wessels
Stena has ordered new RoPax vessels from the Chinese AVIC Weihai Shipyard. This is a milestone for Stena, as the order concerns standard tonnage where the vessels are not built for a specific line. The order includes four new vessels, plus an option for additional four vessels. The first vessel will be delivered in 2019 and the others in 2020. The plan is to employ them on Stena Line’s routes. The vessels will have 50% higher capacity and 25% lower fuel consumption than the vessels they will be replacing.
Marine Atlantic Inc., which had Highlanders on a five-year charter, decided to exercise its option to purchase the vessel. Highlanders was delivered in February and generated a good capital gain.
Good lessons from mercy ships
The Mercy Ships project continue according to plan at the Chinese Tianjin Xingang Shipyard and delivery is scheduled for 2018. Stena RoRo is responsible on a consulting basis for overseeing the construction and the commercial negotiations with the shipyard. Stena’s personnel have made numerous factory visits to obtain assurance on suppliers’ product quality. The construction of the hospital ship, with interiors five times as extensive as Stena RoRo’s RoPax vessels, has helped increase our knowledge about shipbuilding in China, creating a strong position prior to the above-mentioned order for new vessels.
Per WestlingCEO, Stena RoRo
Our assessment is that the RoRo market will be somewhat weaker in the future, due to the influx of new tonnage, which will put pressure on rates. Many of our RoRo vessels are predominantly ice class, built with high quality and depreciated to a large extent. Together, these factors mean that we are well-equipped for the future.
The market for RoPax vessels will remain in balance in 2018 and into 2019. We have a good position with our current fleet and if we include new orders and options, we will be able to take advantage of our position in the market. The new vessels are built to a high standard and, with their flexible and fuel-efficient design, are well suited for employment in most RoPax markets worldwide.